SUMMARY

Seventh-largest producer in the world with an average annual

production of 17.5 Million vehicles.

4th largest automotive market by volume, by 2015.

4 large auto manufacturing hubs across the country.

7% of the countrys GDP by volume.

6 Million-plus vehicles to be sold annually, by 2020.

STATISTICS

Domestic Market Share 2013-14:

1. Passenger Vehicles 13.59%.
2. Commercial Vehicles 3.44%.
3. Three-wheelers 2.60%.
4. Two-wheelers 80.37%.

The industry currently accounts for almost 7% of the countrys GDP

and employs about 19 Million people both directly and indirectly.

India is currently the seventh-largest producer in the world with an

average annual production of 17.5 Million vehicles, of which 2.3 Million are
exported.

The Indian automobile market is estimated to become the 3rdlargest

in the world by 2016 and will account for more than 5% of global vehicle
sales.

India is the second-largest two-wheeler manufacturer, the largest

motorcycle manufacturer and the fifth largest commercial vehicle
manufacturer in the world.

The total turnover in 2010-11 was USD 58.5 Billion, turnover by 2016
is slated to be USD 145 Billion.

SECTOR POLICY

AUTO POLICY:

Automatic approval for foreign equity investment up to 100% with no

minimum investment criteria.

Manufacturing and imports in this sector are exempt from licensing

and approvals.

The encouragement of R&D by offering rebates on R&D expenditure.

AUTOMOTIVE MISSION PLAN, 2OO6-16:

To emerge as the worlds destination of choice for design and

manufacture of automobiles and auto components with output reaching a
level of USD 145 Billion, accounting for more than 10% of the GDP and
providing additional employment to 25 Million people by 2016.

The setting up of a technology modernization fund focusing on small

and medium enterprises.

The establishment of automotive training institutes and auto design

centres, special auto parks and auto component virtual SEZs.

AUTOMOTIVE MISSION PLAN 2O16-26:

The Automotive Mission Plan II for the period 2016-26 is under

preparation and will be finalized by mid-2015.

NATIONAL AUTOMOTIVE TESTING AND R&D

INFRASTRUCTURE PROJECT (NATRIP):

The project has been set up at a total cost of USD 388.5 Million to
enable the industry to adopt and implement global performance standards.

Focus on providing low-cost manufacturing and product development

solutions.

THE DEPARTMENT OF HEAVY INDUSTRIES & PUBLIC

ENTERPRISES:

Working towards the reduction of excise duty on small cars and

increased budgetary allocation for research and development.

A weighted increase in R&D expenditure to 200% from 150% (inhouse) and 175% from 125% (outsourced).

THE NATIONAL MISSION FOR ELECTRIC MOBILITY 2O2O:

The objective of this body is to encourage reliable, affordable and

efficient xEVs (hybrid and electric vehicles) that meet consumer
performance and price expectations through government-industry
collaboration, for the promotion and development of indigenous
manufacturing capabilities, required infrastructure, consumer awareness
and technology thereby helping India emerge as a leader in the twowheeler and four-wheeler xEV market in the world by 2020, with total xEV
sales of 6-7 Million units thus enabling the Indian automotive industry to
achieve global xEV manufacturing leadership and contributing towards
national fuel security.

PILOT ELECTRIC VEHICLE PROJECTS:

The Department of Heavy Industry is launching pilot projects on

electric vehicles in Delhi and subsequently, other metros and cities all
across the country under the NEMPP 2020 with a dual purpose
demonstrating and disseminating the benefits of adopting cleaner, greener
modes of transportation as also to explore the viable operational
modalities.

The DHI will provide viability gap funding through subvention to

support the extra cost of acquisition and operation of these vehicles by
state governments or designated bodies. In the first phase, a pilot project to
provide last mile connectivity to the Delhi Metro through electric passenger
vehicles, has been approved. All the other states have been brought on
board and different states have already appointed nodal officers to coordinate with DHI and vehicle manufacturers for the implementation of
those pilot projects.

The uptake of electric vehicles will depend in large part on the

adequate deployment of Electric Vehicle Supply Equipment (EVSE) needed
to recharge electric vehicles.

AVATION

SUMMARY

9th largest civil aviation market.

163 Million passengers in 2013.

60 Million international passengers by 2017.

85 international airlines connecting over 40 countries.

3rd largest aviation market by 2020.

800 aircraft by 2020.

REASONS TO INVEST

India is one the fastest growing aviation markets and currently the
ninth largest civil aviation market in the world.

India is projected to be the 3rd largest aviation market by 2020.

Total passenger traffic stood at 163.06 Million during 2013. India is

one of the least penetrated air markets in the world with 0.04 trips per
capita per annum as compared to 0.3 in China and more than 2 in the USA.

Indian carriers plan to increase their fleet size to reach 800 aircrafts
by 2020.

The Indian aviation sector is likely to see investments totalling USD

12.1 Billion during 2012-17; USD 9.3 Billion is expected to come from the
private sector.
INVESTMENT OPPORTUNITIES

300 business jets, 300 small aircraft and 250 helicopters are
expected to be added to the current fleet in the next 5 years.
Growth in aviation is accentuating demand for MRO facilities.

Greenfield airports under Public Private Partnership at Navi Mumbai

and Mopa (Goa).

The development of new airports the Airports Authority of India

aims to bring around 250 airports under operation across the country by
2020.

The North-east region the Airports Authority of India plans to

develop Guwahati as an inter-regional hub and Agartala, Imphal and
Dibrugarh as intra-regional hubs.

The Airports Authority of India plans to spend USD 1.3 Billion on nonmetro projects between 2013 and 2017, focusing on the modernisation and
upgradation of airports.

Indian airports are emulating the SEZ Aerotropolis model to enhance

revenues, focus on revenues from retail, advertising and vehicle parking,
security equipment and services.
FOREIGN INVESTORS

Airbus (France)

Boeing International Corporation (USA)

AirAsia (Malaysia)

Rolls Royce (UK)

Frankfurt Airport Services Worldwide (Germany)

Honeywell Aerospace (USA)

Malaysia Airports Holdings Berhad (Malaysia)

GE Aviation (USA)

Airports Company South Africa Global (South Africa)

Alcoa Fastening Systems Aerospace (USA)

BIOTECHNPLOGY

SUMMARY

3rd biggest biotech industry in the Asia-Pacific region.

2nd highest number of USFDAapproved plants.

USD 3.7 Billion to be spent on biotechnology from 2012-17.

No. 1 producer of Hepatitis B vaccine recombinant.

USD 4.3 Billion bio-economy by the end of 2013.

USD 100 Billion industry by 2025.

STATISTICS

The Indian biotech industry will grow at an average growth rate of

around 30% a year and reach USD 100 Billion by 2025.

The Indian bio-economy grew to USD 4.3 Billion at the end of 2013,
up from USD 530 Million in 2003.

The Indian biotech industry grew by 15.1% in 201213, increasing

the markets revenues from USD 3.31 Billion in 2011-12 to USD 3.81 Billion
in 201213.

The market size of the sector is expected to rise up to USD 11.6

Billion by 2017 due to a range of factors such as growing demand for
healthcare services, intensive R&D activities and strong government
initiatives.

The Indian biotechnology sector is divided into five major segments

bio-pharma, bio-services, bio-agri, bio-industrial and bio-informatics.

The bio-pharmaceutical sector accounts for the largest share of the

biotech industry with a share of 64% in total revenues in 2013, followed by
bio-services (18%), bio-agri (14%), bio-industrial (3%) and bio-informatics
(1%).

Revenue from bio-pharma exports reached USD 2.2 Billion in 2013,

accounting for 51% of total revenues of the biotech industry.
INVESTMENT OPPORTUNITIES

The Department of Biotechnology has established biotech parks in

various parts of the country to facilitate product development, research and
innovation, and the development of biotechnology industrial clusters.

Operational biotech parks are located at Lucknow in Uttar Pradesh,

Bangalore in Karnataka, Kalamassery and Kochi in Kerala, Guwahati in
Assam and Chindwara in Madhya Pradesh.

The parks offer investors incubator facilities, pilot plant facilities for
solvent extraction and laboratory and office spaces.

India constitutes around 8% of the total global generics market, by

volume, indicating a huge untapped opportunity in the sector.

Outsourcing to India is projected to spike up after the discovery and

manufacture of formulations.

Hybrid seeds, including GM seeds, represent new business

opportunities in India based on yield improvement.
FOREIGN INVESTORS

Limagrain (France)

Endo Pharmaceuticals (USA)

Mylan Inc. (USA)

Sanofi Aventis (France)

Abbot Laboratories (USA)

Fresenius (Singapore)

Hospira (USA)
THARMAL

SUMMARY

123 Billion Tonnes of proven coal reserves.

1,355 Billion Cubic Metres of proven natural gas reserves.

5th largest producer of electricity.

5th largest consumer of electricity.

100% FDI permitted under automatic route in the power sector.

REASONS TO INVEST
STATISTICS

With a production of 1108 TW, India is the worlds fifth largest

producer and consumer of electricity with a total demand of 1905 TW
expected by 2022.

The power sector accounts for almost a quarter of the projected

investments amongst all the infrastructure sectors between 2012-17.

During 2007-13, electricity production expanded at a CAGR of 5.5%.

A total thermal installed capacity of 156.5 GW as of October 2013.

INVESTMENT OPPORTUNITIES

Power Generation

Transmission & Distribution

Power Trading

Power Exchanges
FOREIGN INVESTORS

CLP Holdings (Hong Kong)

GE Energy (USA)

AES (USA)

Kosep (South Korea)

Abellon Clean Energy (Canada)

GDF SUEZ (France)